Which of the Following Controls Would Be of Concern to Management

question 40

Multiple Choice

Which of the following controls would be of concern to management but not to the auditor?

• A) controls over the collection of accounts receivable amounts
• B) controls over the entry of payroll wage rates into the computer systems
• C) controls over the distribution of promotional information to potential clients
• D) controls over the cost of inventory items as recorded in the perpetual inventory system

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Definitions:

Surface Water

All bodies of water found on the Earth's surface, such as rivers, lakes, wetlands, and oceans, as opposed to groundwater.

Condenses

The process by which a substance changes from a gaseous state to a liquid state.

Low-pressure Cells

Areas in the Earth's atmosphere where the air pressure is lower than that of the surrounding regions, often associated with wet weather conditions.

Predominant Natural Vegetation

The most common type of wild plants growing in a particular region without human intervention.